Air India under a cloud

The future of India’s flag carrier was in doubt last week after the Indian government delayed the closing date for bids to acquire the 76% of the state-run Air India on offer by two weeks until 31 May.

The Ministry of Civil Aviation said there had been queries from potential bidders, which officials described as “largely of a procedural nature”, but also including what might be the government’s intentions with its remaining 24% stake if the sale was successful.

In-principle approval for the sale of the loss-making airline was given by the government in March. The sale also includes Air India Express and the parent company’s 50% stake in ground handler Air India SATS Airport Services.

The ministry said Air India Engineering Services, Air India Air Transport Services and Airline Allied Services were not part of the sale and would be moved into a separate company once the reorganisation was complete.

Hotel Corporation of India, which owns two hotels and provides airline meals at Delhi and Mumbai airports, is also excluded from the sale.

Air India serves 54 domestic and 39 international destinations and has been loss-making for many years.

www.airindia.in

www.civilaviation.gov.in

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